LONDON - Mining giant Anglo American (JO:AGLJ) plc provided a production update for the third quarter ended September 30, 2024, showcasing consistent operational performance and adjustments to its production guidance. CEO Duncan Wanblad emphasized the achievement of a record quarter for the Minas-Rio iron ore operation in Brazil and the progress in reshaping the company's copper operations.
The company has increased its full-year refined production guidance for platinum group metals (PGMs) to 3.7-3.9 million ounces and for nickel to 38,000-39,000 tonnes, citing strong operational performance. This adjustment also includes a decrease in the unit cost guidance for nickel to approximately 530 cents per pound.
The stock gained 4.7% by 2:30 PM London Time.
Anglo American's portfolio simplification efforts are advancing, with the demerger of its PGMs segment on track for completion by mid-2025. The sale process for its steelmaking coal assets is attracting significant interest, with a final round of bidders established. A sale agreement is anticipated to be announced in the upcoming months. Recent imagery indicated limited fire damage at the Grosvenor mine, positively influencing the sale process.
The company has reduced rough diamond production from its De Beers unit in response to market conditions, with the diamond market facing challenges due to elevated inventory levels. Production adjustments are being considered in collaboration with partners due to the expectation of a slow recovery in the market.
In terms of production highlights, copper output is aligned with annual guidance despite a 13% decrease in the quarter, attributed to the planned closure of the Los Bronces plant and partially offset by higher grades at El Soldado. Iron ore production saw a 2% increase, with Minas-Rio posting a record performance for the quarter. Steelmaking coal production fell by 6%, largely due to the Grosvenor mine's cessation of mining activities following an underground fire in June 2024.
PGM operations saw a 10% decline compared to the same period last year, aligning with the 2024 guidance, while nickel production rose by 6% due to improvements at Barro Alto. The diamond segment witnessed a 25% reduction in rough diamond output, reflecting the current market environment.
Wanblad also highlighted the company's goal to create an investment proposition centered on copper, premium iron ore, and crop nutrients assets, projecting an increase in annual copper production to over one million tonnes by the early 2030s.
This update is based on a press release statement, providing a snapshot of Anglo American's recent performance and strategic initiatives as the company navigates the dynamic commodities market.
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